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Question - Company P acquired all of the outstanding common shares of Company S at a total cost of $890,000 in cash. At the acquisition date, S's identifiable net assets have total book value of $680,000 and total fair value of $920,000. At what amount should P record its "Investment in S" (in its own book) at the time of the acquisition?
a. $890,000
b. $680,000
c. $920,000
d. $0
e. (None of these)
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